Vodacom, MTN to attend OTT hearings - TechCentral

Vodacom, MTN to attend OTT hearings

Shameel Joosub

Vodacom CEO Shameel Joosub

South Africa’s two biggest mobile networks are gearing up to attend parliamentary hearings on possible regulation of over-the-top (OTT) services.

Vodacom and MTN will attend hearings on 26 January at which parliament’s portfolio committee on telecommunications & postal services will discuss possible regulation of OTT services. The hearings have been scheduled following requests from mobile networks, the committee said in a statement on Thursday.

Maya Makanjee, who is Vodacom’s chief officer of corporate affairs, said her company will be attending the hearings but that it won’t be delivering a presentation.

“Vodacom is supportive of a review of the regulation similar to the view expressed by the European Commission, articulated in the Digital Single Market strategy, that rules must be simpler, future proof and must also ensure a level playing field between traditional telecoms companies and new players where they compete in the same market,” Makanjee said.

MTN South Africa said it would also be present at the hearings.

“MTN believes that telecoms operators and OTT operators can co-exist in an agreed and mutually beneficial relationship,” the company said. “MTN is committed to establishing an amicable relationship with OTTs.

“MTN will make a representation to the portfolio committee on telecoms & postal services on its viewpoint regarding [OTT] operators,” the company added.

The CEOs of both Vodacom and MTN South Africa have previously made calls for OTT regulation.

“A lot of your data growth is driven by the same people who are trying to cannibalise you,” Vodacom CEO Shameel Joosub said in an earnings call in November last year.

Joosub, at the time, went on to call for OTT operators to face greater scrutiny.

MTN South Africa CEO Mteto Nyati

MTN South Africa CEO Mteto Nyati

“It needs to be carefully considered from a regulatory perspective — there should be some rules and regulations around it,” he said.

Meanwhile, MTN South Africa CEO Mteto Nyati said in October last year that regulators need to step in regarding OTTs in South Africa.

“You have these players which are getting huge benefit out of an industry without making any investment. How do we level the playing fields?” Nyati said.

He went on to call for regulators to ensure the “playing fields are level between us, the network operators and the over-the-top players”.

South Africa’s third largest network, Cell C, also plans to attend the hearings, but looks set to take a different position.

“We strongly believe that this (regulating OTT players) could be to the detriment of the industry and consumer at large,” Cell C CEO Jose Dos Santos said.

“It is key for mobile operators and OTTs to find innovative ways to work together and we look forward to building on our existing partnerships with the OTTs,” he added.

Other opposition to OTT regulation could come from the public after online women’s magazine, All4Women.co.za, launched a petition that has already notched up over 4 000 signatures.

OTT is not just becoming a hot topic for networks in South Africa though.

In Morocco this month, reports have emerged about all three mobile networks in that country restricting the use of voice-over-Internet protocol services that include Viber, Skype and WhatsApp.  — Fin24

4 Comments

  1. Do the right thing on

    For years you guys have been profiting off excessive/inflated tariffs ito data and voice , you guys never planned for the day data costs would be lowered or when the consumer would look for alternatives in the form of OTT, you paid yourself huge bonuses and dividends at the expense of the subscriber over years , now you guys want to regulate OTT , only in SA can you get away with this crazy idea and where the portfolio committee would even entertain this BS. Have you guys even thought about the consumer backlash and loss of customers if you guys get this through.I would have though that your risk committee would have assessed the risk.This is the same as charging us toll fees – OUTA and AFRIFORUM ,maybe its time you guys tackle the telecoms industry for their part in stifling economic growth in SA and overcharging consumers. what hashtag can we use for these guys

  2. All of this is a smoke screen for the ability to charge excessive rates on data for voice and text communication, but the elephant in the room no one is looking at is WiFi networks, this really worries mobile operators. When you can call and text from almost any network other than theirs they start to see the writing on the wall.

  3. Greg Mahlknecht on

    Yes… long term this is what’s going to kill the MNOs. 2 years ago my mobile bill was R500+. Nowdays it’s about R50. I have the cheapest MTN voice contract (R25’ish?) and with eBucks discount, R20-R30/month data is all I need. The rest is all wifi traffic. And I use a LOT of data on my phone. They do such a good job of remembering wifi pairings, that if you’re a creature of habit like I am, the phone just does everything transparently for you.

  4. Time to shift to an operator that understands innovation and competition. Vodacom, MTN and Telkom suck in both spheres.

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